What's happening
This bill allows writers' fees and salaries to qualify for New York's film production tax credit, with diversity hiring requirements and spending caps.
Why it matters
Expands access to the film tax credit for writers. by making writers' fees and salaries eligible, which could boost in-state writing jobs and help attract or retain more creative talent in New York.
Imposes a spending cap. no more than $50,000 per writer per project and a total of $5 million in tax credits annually for writers' compensation—to prevent excessive payouts and maintain budget discipline within the tax credit program.
Introduces diversity hiring requirements. , mandating that productions with more than three writers include at least one woman or minority group member to qualify for the writer-related tax credits, aiming to increase representation in writers’ rooms.
Limits eligibility to writers taxed in New York. , ensuring the economic benefits of the credit (such as job creation and income tax revenue) accrue primarily to the state.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Include Writers in Film Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4227
2019-2020 Regular Sessions
IN SENATE
March 5, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to eligibility for the empire state film production credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 2 of subdivision (b) of section 24 of the tax law, as added by section 1 of part P of chapter 60 of the laws of 2004, is amended to read as follows:
(2) "Production costs" means any costs for tangible property used and services performed directly and predominantly in the production (including pre-production and post production) of a qualified film. "Production costs" shall not include [(i) costs for a story, script or scenario to be used for a qualified film and (ii)] wages or salaries or other compensation for writers, directors, including music directors, producers and performers (other than background actors with no scripted lines). Writers' fees and salaries shall be eligible production costs subject to the provisions of subdivision (c) of this section; provided, however, that fees that are based on deferred, leveraged or profit participation costs, or are in excess of those otherwise permitted by subdivision (c) of this section shall not be eligible production costs. "Production costs" generally include technical and crew production costs, such as expenditures for film production facilities, or any part thereof, props, makeup, wardrobe, film processing, camera, sound recording, set construction, lighting, shooting, editing and meals.
§ 2. Subdivision (b) of section 24 of the tax law is amended by adding a new paragraph 9 to read as follows:
(9) "Writer" means a writer employed or retained to write or revise scripts, screenplays, teleplays, dialogue, sketches, routines or narrations.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10338-01-9
S. 4227 2
§ 3. Subdivisions (c), (d) and (e) of section 24 of the tax law are relettered subdivisions (e), (f) and (g) and two new subdivisions (c) and (d) are added to read as follows:
(c) For a feature film or television production writers' fees and salaries shall be eligible costs; provided, however, such costs shall not exceed fifty thousand dollars per writer per qualified film. Provided, further, that notwithstanding any other provision of this section, a writer's services shall be eligible for the credit up to the maximum amounts of this subdivision if such writer is subject to taxation by this state.
(d) The state annually will disburse no more than five million dollars in tax credits for production costs for writers fees and salaries pursuant to this section. Such credits shall only be available from credits allowed for production costs as defined and governed by this section.
§ 4. The tax law is amended by adding a new section 24-b to read as follows:
§ 24-b. Diversity in hiring for writers. Where more than three writers are to be hired or retained for service on an eligible production, credits for writer costs authorized pursuant to section twenty-four of this article shall only be granted where at least one such writer is a minority group member, as defined by subdivision eight of section three hundred ten of the executive law, or a woman.
§ 5. This act shall take effect April 1, 2020.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to eligibil- ity for the empire state film production credit
Purpose
To include writing fees as an eligible expense to receive a credit under the Empire State Film Production Credit for a movie or television show produced in New York State.
Summary of provisions
Section 1. Modifies the definition of "qualified production costs" to include writer's fees and services.
Read the full memo (626 words)
Section 2. Defines "writer" for purposes of the Empire State Film Production Credit.
Section 3. Places a cap of $50,000 per writer on the amount of the cred- it that may be claimed by a qualified taxpayer. Places a cap of five million dollars on the amount of tax credit that may be disbursed for writers.
Section 4. Requires of hiring of a minority or woman writer when more than three writers are hired.
Section 5. This bill shall take effect on April 1, 2020.
Justification
Many films and television shows are drawn to the unique urban and picturesque landscapes of New York. The Empire State Film Production Credit has created jobs and brought revenue to New York when productions move to or begin in New York and take advantage of the 301, tax credit on qualifying production costs. However, it has not created employment opportunities for the thousands of New York State residents who try to earn their living by writing for television and film.
Since 2008, the number of major television productions filming in New York State has drastically risen. Collectively, these shows employed more than 122 writers. Of these writers, only 24 of them lived in New York. The remaining writers reside on the West Coast, many in Los Angeles. Some of these writers work on scripts for shows such as Ugly Betty and Law & Order: Special Victims Unit, where the City of New York is a main character, without even visiting New York prior to writing an episode. At the same time, many New Yorkers have found it impossible to maintain a career writing for television without leaving the state, uprooting their families and depriving the state of tax revenue.
Currently the Empire State Film Credit does not include writers as a qualified production cost, while Connecticut and Michigan do include writers in their film production tax credits. Canada, the biggest competitor for film and television productions, includes writers in their tax credit as well. Including writers as a qualified production cost will create jobs for New Yorkers as well as preserving New York's strong tradition as a creative center for entertainment. Both New York State and the film industry have been committed to increasing the pres- ence of minorities and women in film and television. In this light, this bill requires that when three or more writers are hired by an entity seeking such a credit, at least one must be a minority or woman.
The inclusion of writers as a qualified production cost would create new jobs and revenue with little fiscal impact. Although funds for the Empire State Film Production Tax Credit are already allocated, this bill would carve out a small amount of those funds and devote them to writ- ers.
Legislative history
2017-18: S2256 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS 2015-2016: S.2518A - Amended and Recommitted to Investigations & Gov Ops 2013-2014: S.3191A - Investigations & Gov Ops 2011-2012: S.3378 - Investigations & Gov Ops 2010: S.6101 - Investigations & Gov Ops; A.8144 - Ways & Means 2009: S.6101 - Rules; A.8144 - Ways & Means
Fiscal implications
This bill makes use of funds already allocated to the Empire Film Tax Credit. No additional allocation of funds is required.
Effective date
This act shall take effect April 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.